Declining home sales and new-home construction have led some experts to say we are in a “housing recession." But will this mean that, if you’re interested in buying a home, you’ll snag a deal? Not necessarily. While sales of homes are plummeting, home prices aren’t dropping at the same rate. The average price of homes sold in July was nearly $550,000, up more than $80,000 from the average home price last year, according to the Census Bureau. While mortgage rates have been on the rise, interested home buyers have been getting a small break lately. The average rate on a 30-year fixed-rate mortgage currently sits at 5.13% according to Freddie Mac, and while that’s much higher than the 2.86% that buyers could have scored last year, it’s declined from 5.81% in June. Still, a housing “recession” could bring some good news if you’re trying to buy a home. While homeowners can receive high prices for their homes, a slowdown in sales could mean that you, as a buyer, will have more leverage to get homes at a more affordable price. This article originally appeared in ‘The Balance Today’ newsletter. You can get ‘The Balance Today’ delivered to your inbox daily, just sign up here.
